Goldman Sachs Stock Slips After Bear Notes

Puts have been extremely popular in the options pits

Deputy Editor
Oct 5, 2022 at 10:56 AM
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As part of a broader bear note against bank stocks due to lower investment activity, Atlantic Equities downgraded Goldman Sachs Group Inc (NYSE:GS) to "underweight" from "neutral," with a price-target cut to $290 from $330. Two other firms lowered their price targets as well -- Morgan Stanley to $341 from $354, and Oppenheimer to $483 from $511. At last glance, GS is down 3.3% at $304.34. 

Year-to-date, Goldman Sachs stock is down 19.8%. Though the security usually outperforms in October, shares have been struggling since the 320-day moving average rejected its mid-August peak near the $360 level. And more recently, the 20-day moving average moved in as pressure, too.

There is plenty of room for increased pessimism amongst other analysts in coverage. Heading into today, eight of 11 firms carried a "strong buy" rating, while three said "hold." Plus, the 12-month consensus price target of $382.80 is a 25.6% premium to current levels. 

Options traders, meanwhile, have been wholeheartedly bearish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), GS' 10-day put/call volume ratio of 1.54 ranks higher than all other readings from the past year, indicating puts have been getting picked up at a much faster-than-usual clip.


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